Question

Assume you buy $8000 worth of furniture with 6.5%add on interest for 10 years, what will be your monthly payments?

Answer 1

$110

Step-by-step explanation:

Cost of the furniture = $8,000

Add-On Interest = 6.5%

`\begin{gathered} Interest=Principal* Rate*\text{Duration} \\ =8000*6.5\%\text{ }*10 \\ =0.065*8000*10 \\ =5200 \end{gathered}`

Add 520 to the principal.

`\text{Amount Payable=8000+5200=13,20}0`

Since the repayment is to be made over 10 years:

`\text{Monthly Payment}=(13,200)/(10*12)=\$110`

The monthly payments will be $110.